Outthink the Competition
Wharton/ SII
March 8, 2010
Philadelphia, PA
© Kaihan Krippendorff, 2007
0
Go home
Wait
Cross
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
1
What sets them apart?
Alexander the
Great
Napoleon Bonaparte
Hannibal
Mao Tse-Tung
© Kaihan Krippendorff, 2007
Sun Tzu
Genghis
Khan
Col. John Boyd
What sets them apart?
Bill Gates
Henry Ford
© Kaihan Krippendorff, 2007
Ray Kroc
John D.
Rockefeller
Steve Jobs
Thomas Edison
Richard Branson
What sets them apart?
Martin Luther
King, Jr.
Thomas
Jefferson
© Kaihan Krippendorff, 2007
Mahatma
Gandhi
Nelson
Mandela
Buddha
Mohammad
Yunus
Confucius
Benjamin
Franklin
Pele
Michael
Jordan
© Kaihan Krippendorff, 2007
Dick Fosbury
The most
successful
players
have the
ability to
see the
strategic
options
their
opponents
ignore.
All breakthrough companies
Outthink their competition.
© Kaihan Krippendorff, 2007
1-2-3
A-B-C
THE ACCEPTED WAY OF DOING THINGS.
SEE THE ONE THAT TAKES THEIR MARKET
AND COMPETITORS OFF-GUARD.
© Kaihan Krippendorff, 2007
The Fourth Option
™
The strategy for outthinking your
competition.
© Kaihan Krippendorff, 2007
Agenda
Overview
Problem
Options
Priorities
© Kaihan Krippendorff, 2007
How can you see options
your competitors overlook?
© Kaihan Krippendorff, 2007
Logic hides
from our
view
potential
solutions
that could
catch your
competition
off guard.
© Kaihan Krippendorff, 2007
Options in chess
Opening
Number of
possible
outcomes
Memory
capacity
© Kaihan Krippendorff, 2007
Middle
End-game
Pattern Recognition
Take patterns and combine them in new ways.
© Kaihan Krippendorff, 2007
Grand Master
© Kaihan Krippendorff, 2007
Master
Expert
Which patterns?
© Kaihan Krippendorff, 2007
Identifying highly-competitive companies
Revenue
CAGR
Profit
(EBITDA
Margin)
© Kaihan Krippendorff, 2007
Return
(TRS)
© Kaihan Krippendorff, 2007
Defining your playbook
Top Corporate
Top sales &
negotiation
Your
playbook
© Kaihan Krippendorff, 2007
Agenda
Overview
Problem
Options
Priorities
© Kaihan Krippendorff, 2007
© Kaihan Krippendorff, 2007
Agenda
Overview
Problem
Options
Priorities
© Kaihan Krippendorff, 2007
Your playbook
 Partner with someone
unexpected
Who else benefits if you win?
 Exchange a brick for jade
What brick can you exchange?
 Exchange the role of guest for
that of host
How can you move up the decision
ladder?
 Attack from two fronts
With whom can you launch a twofront battle?
 Create something out of nothing
What could you create?
 Coordinate the uncoordinated
Who could you coordinate?
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
22
#5 Partner with someone unexpected
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
23
#5 Partner with someone unexpected
Partner with a competitor or others outside of current
consideration.
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
24
Defining unexpected
your playbook
#5 Partner with someone
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
25
Your playbook
 Partner with someone
unexpected

Who else benefits if you win?
 Exchange a brick for jade
What brick can you exchange?
 Exchange the role of guest for
that of host
How can you move up the decision
ladder?
 Attack from two fronts
With whom can you launch a twofront battle?
 Create something out of nothing
What could you create?
 Coordinate the uncoordinated
Who could you coordinate?
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
26
2. Exchange a “Brick” for a “Jade”.
Give
something
on which you
place
relatively
little value in
exchange
for
something
you value
more.
© Kaihan Krippendorff, 2007
2. Exchange a “Brick” for a “Jade”.
Give something
on which you
place relatively
little value in
exchange for
something
you value
more.
© Kaihan Krippendorff, 2007
2. Exchange a “Brick” for a “Jade”.
Give something
on which you
place relatively
little value in
exchange for
something
you value
more.
© Kaihan Krippendorff, 2007
Your playbook

Who else benefits if you win?
 Exchange a brick for jade

What brick can you exchange?
 Exchange the role of guest for
that of host
How can you move up the decision
ladder?
 Attack from two fronts
With whom can you launch a twofront battle?
 Create something out of nothing
What could you create?
 Coordinate the uncoordinated
Who could you coordinate?
 Partner with someone
unexpected
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
30
23. Exchange the role of a guest
for that of the host.
How can you move up the decision-making
chain of your customer/ adversary?
© Kaihan Krippendorff, 2007
23. Exchange the role of a guest
for that of the host.
How can you move up the decision-making
chain of your customer/ adversary?
© Kaihan Krippendorff, 2007
23. Exchange the role of a guest
for that of the host.
Take an
unthreatening
stance then
incrementally
build power,
eventually
take control.
How can you move up the decision-making
chain of your customer/ adversary?
© Kaihan Krippendorff, 2007
23. Exchange the role of a guest
for that of the host.
Take an
unthreatening
stance then
incrementally
build power,
eventually
take control.
How can you move up the decision-making
chain of your customer/ adversary?
© Kaihan Krippendorff, 2007
Your playbook

Who else benefits if you win?

What brick can you exchange?
 Partner with someone
unexpected
 Exchange a brick for jade

 Exchange the role of guest for
that of host
How can you move up the decision
ladder?
 Attack from two fronts
With whom can you launch a twofront battle?
 Create something out of nothing
What could you create?
 Coordinate the uncoordinated
Who could you coordinate?
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
35
#7 Attack from two (multiple) fronts
36
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
#7 Attack from two (multiple) fronts
Business
software
Online services
Business
software
37
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
#7 Attack from two (multiple) fronts
Old
technology
($700)
Old
Technology
($300)
New
Technology
($25,000)
38
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
#7 Attack from two (multiple) fronts
Traditional
Pharmaceutical
Direct sales
39
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
Your playbook

Who else benefits if you win?

What brick can you exchange?
 Partner with someone
unexpected
 Exchange a brick for jade

 Exchange the role of guest for
that of host

How can you move up the decision
ladder?
 Attack from two fronts
With whom can you launch a twofront battle?
 Create something out of nothing
What could you create?
 Coordinate the uncoordinated
Who could you coordinate?
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
40
#32 Create Something out of Nothing
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
41
32. Create Something Out of Nothing
What could
you create
out of
nothing?
© Kaihan Krippendorff, 2007
#32 Create Something out of Nothing
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
43
#32 Create Something out of Nothing
The player they wished for
A good fabric distributor
A movie production house
The engagement ring
A loyal car rental firm
A loyal customer
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
44
Your playbook

Who else benefits if you win?

What brick can you exchange?
 Partner with someone
unexpected
 Exchange a brick for jade

 Exchange the role of guest for
that of host

 Attack from two fronts
How can you move up the decision
ladder?
With whom can you launch a twofront battle?
 Create something out of nothing

What could you create?
 Coordinate the uncoordinated
Who could you coordinate?
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
45
34. Co-ordinate the uncoordinated.
© Kaihan Krippendorff, 2007
34. Co-ordinate the uncoordinated.
© Kaihan Krippendorff, 2007
34. Co-ordinate the uncoordinated.
© Kaihan Krippendorff, 2007
34. Coordinate the uncoordinated.
© Kaihan Krippendorff, 2007
34. Coordinate the uncoordinated.
Combine and coordinate
independent elements
within your environment
to orchestrate
much greater power.
© Kaihan Krippendorff, 2007
34. Coordinate the uncoordinated.
Clusters
Stores
© Kaihan Krippendorff, 2007
34. Coordinate the uncoordinated.
Industry
coalition
Competitors
© Kaihan Krippendorff, 2007
Your playbook

Who else benefits if you win?

What brick can you exchange?
 Partner with someone
unexpected
 Exchange a brick for jade

 Exchange the role of guest for
that of host

 Attack from two fronts
 Create something out of nothing


 Coordinate the uncoordinated
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
How can you move up the decision
ladder?
With whom can you launch a twofront battle?
What could you create?
Who could you coordinate?
53
Agenda
Overview
Problem
Options
Priorities
© Kaihan Krippendorff, 2007
Defining strategic priorities
Attractiveness
Hi
“Crazy”
No
brainers
Wastes of
time
Tactics
Med
Low
Low
Med
Achievability
© Kaihan Krippendorff, 2007
Hi
Agenda
Overview
Problem
Options
Priorities
© Kaihan Krippendorff, 2007
Choose your path.
© Kaihan Krippendorff, 2007
www.kaihan.net
•
•
•
•
•
©
Krippendorff,
2007
© Kaihan
Kaihan
Krippendorff,
2009
Monthly newsletter
Fastcompany blog
Tools
Seminars
Webinars
58